Credit Required

As Congress works to try to put forth an emergency Bill to unlock the credit markets, the centerpieces of concern remain businesses access to credit and the health of the consumer, in particular, the ability of the consumer to have access to credit.

Principal in any economic rebound is the stabilization and return to normal market conditions of the residential real estate market, which translates into consumer net worth. The consumer will need bargaining power and lines of credit to work with to help combat the downward pressure in the marketplace, and obviously the current credit issues have those outlets dramatically weakened if not closed.

Due to incredible mismanagement, improper regression analysis or whatever chisanbop mathematical calculation run amuck, the banks inability to estimate the damage on their balance sheets has led them to proceed to squeeze the consumers by raising credit card rates, denying new credit, freezing or closing previously agreed upon credit lines and tightening mortgage lending requirements.

FOX Business Alexis Glick discussed with Spencer Rascoff of Zillow.com and Chip Cummings of Northland Financial Corporation how the congressional Bill may impact housing and therefore the economy as a whole. Take a listen.